I’ve once heard that the USA owns most of its debt to itself, how is that possible? How can you owe debt to yourself?

Question

I’ve once heard that the USA owns most of its debt to itself, how is that possible? How can you owe debt to yourself?

In: 252

Answer 1

along with what others have said there is also interdepartmental debts

say the army has 2 extra planes so they give them to the air force. now the air force owes the army $50 million. that gets calculated as national debt.

or imagine if you lend $50 to your brother. you could say your family is $50 in debt even though its really only your brother thats in debt.